The Supreme Court will hear, on Tuesday, a plea by real estate major Unitech challenging the proposed takeover of the management of the indebted company by the government.
The bench of Chief Justice Dipak Misra, Justice A.M.Khanwilkar and Justice D.Y Chandrachud directed the hearing of Unitech’s plea along with other other matters after Attorney General K.K. Venugopal told the bench that government has stepped in to take over the management by appointing its own ten directors.
As AG said that move to appoint 10 Directors was at the instance of the government, Chief Justice Misra asked: “How the interest of the home buyers will be protected?”
As senior counsel Ranjit Kumar appearing for Unitech told the court that NCLT order was contrary to an earlier order passed by the top court, the Chief Justice observed: “We are more concerned with home buyers and not with the company and fixed deposit holders/investors. Home buyers are not investors.”
The government has taken recourse to the Companies Act and moved the National Company Law Tribunal (NCLT) for the appointment of its ten directors replacing the earlier ones appointed by the promoters of the company, which is facing proceedings under the Insolvency and Bankruptcy Code.
The NCLT had given its nod to the government’s proposal on December 8.
The real estate giant has moved the top court challenging the NCLT’s December 8 order permitting the government to appoint new board of directors of Unitech.
The Supreme Court had on October 30 directed Unitech’s Managing Director Sanjay Chandra to deposit Rs 750 crore by December. Its order came as amicus curiae Pawanshree Agrawal told the court that the firm would require Rs 2,000 crore to refund the more than 5000 flat buyers who are now seeking refund of their money.
Chandra and his brother Ajay were arrested in April after investors, who did not get flats in the company projects as promised, filed complaints of cheating against them.
They were sent in judicial custody after the trial court refused to extend the three- month interim bail granted to them in April.
The Delhi High Court too refused to extend the interim bail that ended on August 10.